China Bank sees 15% profit growth this year

Listed China Banking Corp. expects to sustain a double-digit growth of 15 percent on the back of the growth in core businesses across all market segments.

The bank owned by retail and banking magnate Henry Sy informed the Philippine Stock Exchange (PSE) it sees its net income reaching P7.4 billion this year or P940 million higher than last year’s P6.46 billion.

China Bank said its net interest income would increase 14 percent to P19.03 billion from P16.69 billion while its non-interest income is seen jumping 32.8 percent to P6.76 billion from P5.09 billion with the increase in bank commission as well as service charges.

Operating expense is expected to grow 16.2 percent to P15.51 billion from P13.35 billion due to increased headcount, additional branches as well as investments in infrastructure and technology.

The Sy-led bank expects a 13 percent growth in its loan book to P436.85 billion from P386.83 billion while investments are seen to rise 9.6 percent to P108.45 billion from P98.98 billion.

The bank’s total asset base is expected to increase 8.9 percent to P689.61 billion this year from P633.2 billion last year.

China Bank’s deposit base is expected to increase eight percent to P585.56 billion from P541.58 billion with the share of low cost deposits increasing to 54 percent from 51 percent.

The bank expects a projected return on average assets of 1.1 percent and a return on average equity of 10 percent this year.

The China Bank Group has a network of 541 consisting of 391 China Bank branches and 150 branches of thrift arm China Bank Savings (CBS) as of end-2016.

China Bank president and chief executive officer Ricardo Chua earlier said the bank will continue to take advantage of opportunities amid the uncertainties in the global financial market this year.

“We look forward to 2017 with our usual cautious optimism, actively pursuing opportunities while mindful of the challenges from a volatile global environment,” Chua said.

China Bank is raising P15 billion via a stock rights offering to beef up its resources.